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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Stitch who wrote (6115)	4/23/1999 9:23:00 AM
From: Sam	Read Replies (2) \| Respond to of 9256

Stitch, "What they aren't telling you in their CCs is that Samsung has been disqualified at virtually all their OEM due to a problem with something called stiction-friction. There has been some resulting channel stuffing at incredible prices. What I can't figure is why that should have that much affect on asp if most drives are shipped OEM." It shows how little leverage the DD vendors with the big OEMs. It may (emphasize "may" here) also be a ripple effect of IBM's pacts with EMC and Dell. DD vendors have to protect themselves against an aggressive IBM. They also have to help out the faltering CPQ mammouth, a major customer for all of them, as LK has pointed out, not to mention making sure that Finis doesn't repeat his earlier feat of growing a billion dollar company in just a couple of years. I have no doubt doubt that SEG and QNTM would prefer that he go down the JTS trail this time around. "Further, I would like to know what SEGs new distribution program will do to Sasung's efforts to sell off into distribution. I hope this is Samsung's DD death knell." Amen. Price wars happen when it is in someone's interest for them to happen. Eliminating Samsung and possibly WDC, as well as perhaps weakening Fujitsu could be strategic goals here. Just speculating. Sam P.S. Good to hear from you again!

To: Stitch who wrote (6115)	4/23/1999 12:45:00 PM
From: La Traguhs	Respond to of 9256

Stitch, <<Further, I would like to know what SEGs new distribution program will do to Sasung's efforts to sell off into distribution. I hope this is Samsung's DD death knell.>> I wouldn't be counting Samsung out just yet. Even with the quality/technical problems at Dell (which I understand have been identified and corrected) they managed to grow units slightly this past quarter from 2.3 million (Q4 '99)to 2.5+ mln. (Capacity for them is 3 mln per quarter) Regarding Dell - Samsung was rated disk drive supplier "number 1" for Q4 '99 based on the Dell vendor evaluation metrics. What a difference a month can make when you screw up quality. They admit they have a long road to travel before getting back to a #1 position at Dell. They are also still aggressive on their product road map. I understand their 6.4 GB/platter is moving well in anticipation of a June product announcement. They are also putting together a "prototype" head manufacturing capability in Korea. They just keep banging away irritating a lot of folks like you Stitch. Good to hear from you again. Regards, LT